Qualcomm Ventures invests in video calling start-up

Tango gets $40 million in third round of funding

San Diego-based Qualcomm is among the new investors in Tango, a start-up company which provides a video calling app for mobile phones and tablets.

Tango, based in Palo Alto, said it raised $40 million in a third round of venture capital funding, with Qualcomm Ventures, and Access Industries as the new investors in the company.

The financing brings Tango’s total funding close to $100 million. The money will be used to expand the company’s business.

"Qualcomm recognizes the importance of video on mobile devices and has been working closely with Tango's team to help enhance video quality and performance," said Nagraj Kashyap, Vice President of Qualcomm Ventures, in a statement. "Tango is a clear leader in this space and we are proud to play a role in helping boost the company's growth."

Existing investors also participated in the round, including members of co-founder Eric Setton's family. Other Tango investors include Draper Fisher Jurvetson, Michael Birch, Andy Bechtolsheim, and Bill Hambrecht.

Tango said the number of daily calls has doubled in the past four months. Since it was founded 18 months ago, 45 million people have used Tango, and more than 10 percent of them use Tango every day.

Tango lets users make video calls, phone calls and send video messages over 3G, 4G, and Wi-Fi networks to others with the Tango app. It taps into a phone user’s data plan to provide the service at no additional charge. Tango plans to add premium services with extra features at a later date to make money. It works on iPhones, iPod touches and iPads, as well as Android phones, Windows Phones and computers.